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ID cards could be good for your pocket

By Editorial staff Simon Wilson Dec 12, 2005

Simon Wilson

The biometric technology behind the Government's controversial plan to introduce ID cards is here to stay ­ and some firms stand to profit substantially, says Simon Wilson

What is biometric ID?
New technologies allow scanning machines to take quick and accurate measurements of individual human characteristics, such as irises, finger prints, and faces. Once you have registered, your information can be stored on a central database and checked against the information held by you on a separate card when you need to prove your identity. Already, some companies use biometrics for applications such as customer identification, employee checks and staff time-keeping, for example.

Do governments use them too?
They are beginning to. The idea is to create official ID documents that are much harder to forge to combat identity theft, terrorism, and problems such as illegal migration and benefit fraud. The EU has decided that member states should in future issue passports with two biometric identifiers, for example, although this apparently applies only to the Schengen-area countries (those EU countries you don't require a passport to move between), and the UK is specifically exempt. And in the UK, under controversial legislation published last month but not yet passed by Parliament, ID cards are to be introduced over the next few years on a phased basis.

Are biometric ID methods fail-safe?
Far from it, say critics. In a recent UK trial of all three principal methods involving 10,000 volunteers, the rates of successful verification were 96% for iris scanning, 81% for fingerprints, and only 69% for facial recognition, which measures the distance between various points on the face.  These high rates of failure are one reason why the British Government is likely to have to incorporate all three forms of biometric testing on the new ID cards and passports ­ adding substantially to the costs.

How much will the UK scheme cost?
A lot. According to a detailed survey published by the LSE this week, the Government has massively underestimated the cost of the scheme ­ put at £5.8bn over ten years, or £93 per card holder. The academics think that, given the rate of change of people's biometric identifiers, people will need new cards every five years, rather than the ten years that the Government is hoping for. They also think that the Government has grossly understated the technology costs, as well as failing to factor in the cost of dealing with refuseniks. They put the likely true cost at up to £18bn.

How big is the biometrics market?
At this early stage, it's impossible to say for sure. But according to International Biometric Group, a consultancy firm, the world market for biometric technologies is projected to quadruple from $1.2bn last year to $4.6bn by 2008. And since the UK's scheme is the biggest of its kind anywhere in the world to date, the technology companies that the Government ultimately chooses will end up playing a big role in shaping the fledgling sector.

Which are the firms to watch?
Whatever the UK decides to do, facial- recognition technology will be key, since the International Civil Aviation Authority has chosen it as the 'global biometric' standard for travel documents. New-style passports will include a super-thin computer chip containing facial data, together (potentially) with other biometric identifiers. Passengers will be require to step in front of a scanning device while the security official swipes the passport chip to check that there's a match. Chip-makers Infineon of Germany and Dutch group Phillips already supply chips for Germany's biometric passport scheme, and should get a boost from increased UK demand. The UK Passport Service has not yet confirmed who will supply its scanners and software, but the firms in the frame are Viisage, Indentix, Acsys Biometrics and Cognitech Systems.

What about iris and fingerprint scanning?
Iris scans can be tricky to get right, as the eye needs to be precisely positioned. Also, it's possible to dupe iris scanners using monochrome patterns printed on paper. Nevertheless, iris scanning is considered the most reliable biometric because it¹s the part of the human body that is most distinctive to each person. Iridian Technologies owns a number of patents in this field, while Panasonic, Oki and LG all make scanning cameras. Currently, fingerprint scanning accounts for half of all revenues in the market, and is the longest established. At least 50 firms make fingerprint scanners, including NEC, Identix and Sgen Morpho, part of the French Safran group. These three firms currently focus on optical scanners, which essentially take a photocopy of your finger pressed against a glass plate. Newer types of more compact scanners, based on silicon chips, map fingerprints using electrical impulses, soundwaves or temperature. Key players here are AuthenTec, Infineon, ST Microelectronics and Fujitsu.


Published in Economics | More articles by Simon Wilson

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